Illinois Mortgage Calculator

Best mortgage lenders in Illinois

The most popular mortgage lenders in Illinois operate nationwide. These include such recognizable names as Gateway Capital Mortgage, Morty Inc, AmeriSave. Several lesser known but trustworthy options include Illinois-based First State Mortgage LLC, Crown Mortgage Company.

How to calculate mortgage payment in Illinois

Use our fast and simple mortgage calculator IL to evaluate your future monthly expenses. A detailed step-by-step instruction follows below.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Illinois for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Illinois parameters.

The initial piece of the puzzle involves the cost of your prospective home, commonly referred to as the home price. The down payment represents a fraction of this price that you need to pay upfront. To steer clear of expensive insurance charges, it's crucial to come up with a minimum of 20% down payment, particularly in the case of a conventional loan. The remaining portion constitutes the principal, which accounts for 80% of the home price when a 20% down payment is made.

The loan term denotes the duration required for full mortgage repayment through scheduled payments. Fixed-rate conforming loans typically have a maximum duration of 30 years, whereas adjustable-rate options usually come with shorter terms.

The interest rate represents a fixed or variable percentage of the principal that you are obligated to pay over the course of the loan. It's important to note that you are actually assessed an annual percentage rate (APR), which is not identical to the interest rate. While the interest rate forms the bulk of the APR, the latter also encompasses various additional fees, such as origination fees, closing costs, and insurance payments, among others.

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Illinois, given a $400,000 home price and a 10% down payment.

Median property taxes in Illinois counties

Property taxes are another crucial factor to take into account when choosing your future home. In many cases, lenders require the establishment of a mortgage escrow account to ensure that the borrower remains current with both tax and insurance expenses.

Source: American Communities Survey 2016, U.S. Census

Illinois Housing Market 2024

The past year has seen a steep increase in the market value of housing in Illinois. This continues a longstanding trend amplified by the COVID pandemic. Nevertheless, the pace of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the increase for some time and are expected to rise further in the near future.

How do I calculate my mortgage payment?

The most convenient approach is to utilize our calculator, which operates based on a straightforward formula. You can also manually calculate the amount to be paid using the same formula:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Illinois

First, there are several federal agencies (USDA, FHA and VA) that guarantee loans for selected borrowers. Many first-time homebuyers can find options which most fit their budget.

In addition to these government-backed initiatives, it's advisable to explore opportunities offered by the UHC (Illinois Housing Corporation) for residents of Illinois. Specifically, first-time homebuyers meeting the qualifications for an FHA loan with a minimum FICO score of 660 can apply for the FirstHome program. This program extends assistance for down payments and closing costs, covering up to 6% of the loan amount. It's essential to note that this assistance is provided in the form of a 30-year fixed-rate second loan exclusively. If you don't meet the criteria for the FirstHome program, there's no need for discouragement. The Illinois Housing Score Loan presents an alternative, covering up to 4% of the loan amount, with a minimum acceptable credit score of 620.

Here are some valuable tips for first-time homebuyers:

1. Secure pre-approval in advance to boost your credibility in the eyes of home sellers. It's advisable to obtain pre-approval letters from not just one, but from at least two or three different lenders.
2. Compare mortgage rates from various lenders. Opt for at least three lenders to give yourself a broader perspective on available options.
3. Conduct preliminary financial planning based on the pre-approved amount. This will help you map out your future expenses effectively.
4. Save as much as you can for a down payment, and start saving early. A substantial down payment reduces the principal amount, potentially lowering your overall costs. So, initiating savings in advance is crucial.
5. If you qualify for a VA loan, consider it as your primary option.
6. Explore government-backed programs and local assistance initiatives. These may offer enticing incentives, so be sure not to overlook them.
7. Whenever possible, work on paying off any existing debts to improve your financial standing.